KLEMENTI

COMMENTARY TO THE FINANCIAL RESULTS

 

COMMENTARY TO 1999 FINANCIAL RESULTS

 

The 1999 consolidated and unaudited net sales of AS Klementi 

amounted to EEK 106.2 million, which is EEK 18.4 million or 14.8% 

less than in 1998 (1999 consolidated net sales EEK 124.6 million). 

Compared to the same period last year, the sale of goods produced 

decreased by 23.9% (from EEK 92.7 million to EEK 70.5 million).

 

Decline in sales of goods produced was mainly due to lower demand 

on AS Klementi's main markets in Estonia, Latvia and Lithuania, and 

also due to reduction in professional apparel orders by 

state-financed institutions due to budget cuts.

 

Sale of goods produced by markets (million EEK):

 

		 	1999 		 1998 		 Change

Estonia	 		49.7		 60.6 		 -18.0%		 

Latvia; Lithuania	11.5 		 22.6 		 -49.2%		 

Finland; Sweden		 8.4 		  8.1 		   3.7%		 

Other			 0.9		  1.4 		 -35.7% 		 

 

Decline in sales of goods produced was compensated by 15.5% y-o-y 

growth in subcontracting works (from EEK 27.4 million to EEK 31.6 

million). The share of subcontracting works in total turnover grew 

by 7.8% (from 22.0% to 29.8%). The company's inventories have 

declined by EEK 4.1 million (from EEK 29.4 million to EEK 25.3 

million) due to lower output volumes. Receivables from customers 

decreased by total of EEK 7.1 million (from EEK 17.5 million to EEK 

10.4 million).

 

The 1999 consolidated and unaudited loss of AS Klementi stood at 

EEK 2.8 million (net profit during the same period last year EEK 

1.6 million).

 

Compared to last year the structure of AS Klementi group has 

remained unchanged. 

 

Complete version of AS Klementi annual report will be published on 

10.03.2000 at the latest. 1999 annual report is also available at 

AS Klementi Internet homepage (www.klementi.ee).

 

 

Ardo  Kamratov

Member of Management Board

+372 67 10 700